Banks N Dhat Flashcards
1
Q
Why do banks fail
A
when they borrow short term and lend long term
Deposits can be taken out instantly and if all same time - run on the bank
Trading with insufficient capital and liquidity
macroEcon question answers > Banks N Dhat > Flashcards
Why do banks fail
when they borrow short term and lend long term
Deposits can be taken out instantly and if all same time - run on the bank
Trading with insufficient capital and liquidity
macroEcon question answers (32 decks)